Smith v. Feigin

190 Misc. 461, 75 N.Y.S.2d 204, 1947 N.Y. Misc. LEXIS 3382
CourtAppellate Terms of the Supreme Court of New York
DecidedNovember 6, 1947
StatusPublished
Cited by2 cases

This text of 190 Misc. 461 (Smith v. Feigin) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Feigin, 190 Misc. 461, 75 N.Y.S.2d 204, 1947 N.Y. Misc. LEXIS 3382 (N.Y. Ct. App. 1947).

Opinion

Eder, J.

Tenant and undertenant appeal from a final order made in favor of the landlord, entered in t°he Municipal Court, Manhattan, Ninth District, after trial.

The facts, in brief, are these: Doctors Owning Corporation is the owner in fee of a fourteen-story professional office building which is used and occupied by members of the medical and dental professions, who carry on their practice there; it is a purely commercial building.

Doctors Owning Corporation is a business corporation organized and existing under the Stock Corporation Law; it was not formed as a co-operative corporation under the provisions of subdivision (a) of section 86 of article 7 of the Co-operative Corporations Law.

On April 11, 1929, Doctors Owning Corporation, lessor, and Henry R. Skeel, as lessee, entered into an indenture of lease which recited that Skeel was the owner of two hundred and thirty-two shares of the capital stock of the corporate lessor, and in consideration of the premises and of the rents, covenants and agreements provided and contained in the lease, “ the lessor hereby leases to the lessee, and the lessee hereby hires from the lessor ” certain office space known as offices 7-A and 7-C, less approximately 192 square feet of 7-C, from October 1, 1929, for the term of approximately twenty years, until and including October 1,1949, which term shall be renewed for successive terms of twenty years each, at an annual rental as therein provided.

[463]*463It is provided in article 1 of the lease, that the lease shall cease and the term thereof come to an end, at the option of the lessor, upon the happening of any one of certain described events, and said article 1 further provides that upon the expiration and termination of the lease, it shall thereupon be lawful for the lessor to re-enter the demised premises and to remove all persons and personal property therefrom, either by summary dispossess proceedings or by any suitable action or proceeding at law, or by force or otherwise, and to repossess the demised premises in its former state, as if said lease had not been made.

No proprietary interest is vested in the lessee under the lease, such as ownership of or title to the space demised; ownership and title are vested in the lessor. All that the- lessee obtains upon paying the rent and performing the covenants and complying with the conditions on his part to be performed, is the right of peaceable and quiet possession and enjoyment of the space demised. Yet the lease is characterized as a “ proprietary ” lease — a misnomer.

On August 25, 1944, a lease was entered into between the estate of Henry E. Skeel, deceased, by Arthur Seybolt, executor, and the appellant Feigin and one Eyan, whereby the office suite aforesaid was let to Feigin and Eyan for a period of one year beginning October 1, 1944, and ending on September 30, 1945. After the expiration of the term Feigin has continued to remain in possession as a statutory tenant and appellant Wditzen as his undertenant. Eyan no longer continues in possession.

On December 12,1946, an agreement was entered into between said Skeel estate and the petitioner herein, whereby in consideration of the sum of $15,000 to be paid by petitioner, the Skeel estate agreed to sell, transfer and assign all its right, title and interest in and to said two hundred and thirty-two shares of said capital stock of the Doctors Owning Corporation, together with the “ proprietary ” lease aforesaid to the petitioner, payable $6,000 upon the execution of the agreement and the balance in six semiannual payments of $1,500 with accrued interest at 4% on the unpaid portion of the principal, payment due on July 1st and January 1st of each year.

As collateral security for the payment of the balance of the purchase price, petitioner agreed to deposit with the Skeel estate the new certificate of said two hundred and thirty-two shares of capital stock, together with the proprietary ” lease.

On the same day — apparently simultaneously with the execution of said contract of sale — the Skeel estate assigned to petitioner all its right, title and interest in and to said lease.

[464]*464Doctors Owning Corporation, on December 19,1946, approved the contract of sale of the shares of stock and of the assignment of the' lease and issued to petitioner a new certificate for two hundred and thirty-two shares of its capital stock.

The petitioner has instituted this summary proceeding asserting he may maintain it by virtue of subdivision (d) of section 8 of chapter 273 of the Laws of 1946 as owner ” of the rental area therein mentioned. As this subdivision now reads, a landlord is authorized to obtain possession of premises from a tenant • where the tenancy has expired if: The landlord owned or acquired an enforceable right to buy or take possession of the building or other rental area on or before .January twenty-fourth, nineteen hundred forty-five and seeks in good faith to recover possession of the business space for his immediate and personal use; or possession is sought by a person who acquires title to the building or other rental area subsequent to January twenty-fourth, nineteen hundred forty-five, and who likewise seeks in good faith to recover possession of the business space for his immediate and personal use; provided * *

The tenant contends petitioner’s status is not one of ownership, but that his status is that of a mere lessee and that he therefore cannot maintain a summary proceeding unless he qualifies under paragraphs (1), (2) or (3) of subdivision (h) of said section 8. These read as follows:

“ (h) On or before January twenty-fourth, nineteen hundred forty-five:
“ (1) the landlord acquired an enforceable right to take possession of the entire building or other rental area for a term of not less than ten years; or
(2) a person owned and owns, at least ninety per centum of the stock of a corporation which owned and owns the entire premises; or
“ (3) a corporation leased and leases business space from a person who owned and owns or who was the lessee of the entire building for a term of not less than ten years and who also owned and owns at least ninety per centum of the stock of such corporation;
“ and such landlord, person or corporation seeks in good faith to recover possession of the business space for his or its own immediate and personal use * *

The petitioner obviously does hot come within the provisions of subdivision (h) or its paragraphs, nor does he claim to come within them; his contention is that his right to possession is [465]*465predicated on subdivision (d) “ as the owner of the rental area ”; that subdivision (h) is without application; that “ by virtue of his stock-holdings and proprietary lease in a co-operatively maintained building, (he is) the owner of the suite of offices involved.”

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Cite This Page — Counsel Stack

Bluebook (online)
190 Misc. 461, 75 N.Y.S.2d 204, 1947 N.Y. Misc. LEXIS 3382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-feigin-nyappterm-1947.